SoundHound Inc. (NASDAQ: SOUN), share price closed up more than 15% on Tuesday, bouncing back from last weeks' pullback on a high volume day for the stock, at 90million against the average of 42million.
As a company widely recognized for integrating artificial intelligence into voice-enabled services, SoundHound witnessed its stock price soar by an impressive 233% throughout 2024 YTD, demonstrating considerable investor confidence and stellar market performance.
With a robust market capitalization exceeding $2.14billion, SoundHound's financial trajectory showcases a paradigm of growth – from a modest annual revenue of $7.7 million in 2019 to a commendable $45.9 million in 2023. Despite this upward trend, it's important to note the company's current financial landscape, marked by substantial losses, with a reported net loss of over $88.9 million last year.
Nevertheless, SoundHound's ventures seem to be geared for substantial future gains, bearing an impressive backlog of over $341 million, dedicated primarily to expanding its footprint in the automotive sector. The company has secured strategic partnerships with automotive titan Stellantis, the conglomerate behind the iconic brands Fiat, Maserati, and Alfa Romeo, signaling profound growth opportunities in this high-potential segment.
Diversifying its AI prowess, SoundHound has already made its mark in the hospitality industry, revolutionizing the restaurant and hotel sectors. With AI solutions implemented in over 10,000 merchant locations, and negotiations in progress with more than 100,000 potential clients, SoundHound is on the verge of drastically streamlining operations and trimming costs for businesses within this space.
Looking at the fiscal horizon, SoundHound has set ambitious revenue targets – aiming for a range of $63 million to $77 million for the current year and reaching for the $100 million milestone by 2025. This revenue push is part of the strategic initiative to bridge its current valuation gap and capitalize on the burgeoning demand for AI solutions across various industry verticals.
On the technical front, SoundHound's stock performance has been nothing short of remarkable. The company's shares have consistently maintained their stance above all moving averages on the daily chart. This robust performance peaked at $8 and shows potential for continued advancement, particularly in conjunction with the much-anticipated Nvidia GTC event, which garners significant investor interest in AI technology companies.
Amongst the luminary figures and innovative enterprises participating in Nvidia's GTC Conference, SoundHound can count itself among peers like Character.ai, Inceptive, Cohere, and OpenAI. The conference will also feature Jensen Huang, the founder of Nvidia, cementing the event as a cornerstone for thought leadership in the AI industry. The event kicks off next week, with virtual registration free.
With Nvidia amongst the shareholders of SOUN, with some 1.7million shares held, it is fair to say that the megacap chipmaker is now firmly in the position of being able to drive AI companies forward. Is SoundHound still a buy? We will be watching next weeks event for clues.
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